Why Is Singapore So Expensive? Unpacking Its High Living Costs
Singapore is renowned for its vibrant economy, strategic location, and high quality of life. However, it is equally famous for its high cost of living.
Whether you are a local resident, an expatriate, or considering relocating, understanding why Singapore is expensive is essential for financial planning.
At Emvertex Credit, we help residents and newcomers navigate these financial challenges with tailored financial solutions, ensuring you can manage your budget effectively.
Table of Content
Why Is Singapore So Expensive?
Singapore ranks among the most expensive cities in the world, mainly due to high property prices, strict car ownership regulations, strong currency, and reliance on imported goods.
The combination of limited land supply, world-class infrastructure, and economic stability drives costs up, making daily living more expensive compared to other major cities.
Take control of your finances with the right plan. See how a debt management plan can support your journey:
4 Key Factors Contributing to High Expenses in Singapore
1. Housing Costs 🏠
Housing is one of the biggest expenses in Singapore due to its small land size and high demand.
- For Singaporeans: The government provides subsidised public housing through the Housing Development Board (HDB), making homeownership affordable.
- For Foreigners: Expats are limited to renting private properties, where prices are significantly higher.
| Housing Type | Average Monthly Rent (SGD) |
|---|---|
|
HDB (3-room flat) |
2,500 – 4,000 |
|
Private Condo (1-bedroom) |
3,000 – 6,000 |
|
Luxury Apartment |
7,000 – 10,000+ |
💡 Tip: Consider living in fringe neighbourhoods like Punggol or Woodlands for more affordable rent while staying well-connected.
2. Transportation Costs 🚆🚗
Singapore offers an efficient and affordable public transport system, but owning a car is a luxury due to the Certificate of Entitlement (COE), which can cost SGD 80,000+.
| Transport Mode | Average Monthly Cost (SGD) |
|---|---|
|
Public Transport (MRT & Bus) |
120 – 180 |
|
Ride-Hailing (Grab, Gojek) |
300 – 600 |
|
Car Ownership (COE, petrol, parking) |
2,000 – 3,500 |
💡 Tip: Opt for monthly transport passes or ride-hailing apps for occasional trips instead of owning a car.
3. Healthcare Expenses 🏥
Singapore has a world-class healthcare system, but costs vary depending on your residency status.
- For Singaporeans & PRs: Government subsidies make healthcare affordable.
- For Foreigners: Private healthcare is expensive without comprehensive insurance.
| Healthcare Service | Subsidised Cost (SGD) | Private Cost (SGD) |
|---|---|---|
|
Polyclinic Consultation |
15 – 30 |
50 – 150 |
|
GP Visit |
30 – 50 |
80 – 200 |
|
Hospital Stay (per night) |
250 – 800 |
1,000 – 3,000+ |
💡 Tip: Purchase health insurance early to cover unexpected medical expenses.
4. Food & Dining Costs 🍜🍣
Food in Singapore caters to all budgets, from affordable hawker centres to high-end restaurants.
| Meal Type | Average Cost (SGD) |
|---|---|
|
Hawker Centre Meal |
4 – 6 |
|
Mid-Range Restaurant |
20 – 50 |
|
Fine Dining |
100 – 500+ |
💡 Tip: Save money by eating at hawker centres and buying fresh ingredients from wet markets instead of supermarkets.
Average Cost of Living in Singapore (2025)
Singapore’s cost of living varies depending on lifestyle choices, accommodation preferences, and spending habits.
While essential expenses like food and public transport can be affordable, rent and private services significantly increase the overall budget.
Below is a breakdown of estimated monthly costs for both individuals and families in Singapore.
| Category | Monthly Cost (SGD) – Single Person | Monthly Cost (SGD) – Family of 4 |
|---|---|---|
|
Rent (1-bedroom apartment) |
2,500 – 5,000 |
5,000 – 10,000 |
|
Utilities (Electricity, Water, Internet) |
200 – 400 |
400 – 600 |
|
Food & Dining |
600 – 1,200 |
1,500 – 3,000 |
|
Transport |
150 – 300 |
500 – 1,000 |
|
Healthcare (Basic Care) |
100 – 500 |
300 – 700 |
|
Education (International Schools) |
N/A |
2,000 – 5,000+ |
|
Total Estimated Monthly Cost |
3,500 – 7,500 |
10,000 – 20,000 |
How to Manage the Cost of Living in Singapore
While Singapore is expensive, smart financial planning can make living in the city more affordable.
Here are three key approaches to managing your expenses:
1. Smart Housing & Transport Choices
Housing and transport take up a significant portion of monthly expenses. Choosing a home in affordable areas, sharing accommodations, and relying on public transport can reduce costs substantially.
✔ Consider subsidised HDB flats if you qualify.
✔ Explore co-living spaces for a budget-friendly option.
✔ Live in fringe neighbourhoods for lower rent.
✔ Use monthly public transport passes for savings.
✔ Choose ride-hailing apps over car ownership to avoid high COE costs.
2. Budget-Friendly Dining & Groceries
Food expenses can vary widely, but adopting smart grocery shopping and dining habits can make a big difference. Cooking at home and buying from cost-effective sources can lower monthly food costs.
✔ Dine at hawker centres instead of restaurants.
✔ Buy groceries from wet markets instead of supermarkets.
✔ Choose house-brand products for lower prices.
✔ Look out for credit card dining promotions and discounts.
3. Financial Planning & Support
Good financial management ensures long-term stability. Tracking expenses, prioritising savings, and seeking assistance when needed can help in managing high living costs.
Track expenses using budgeting apps. Prioritise needs over wants to reduce unnecessary spending. Consolidate debts to manage repayments efficiently. Consider financial assistance or flexible loan options when facing cash flow challenges.
How Emvertex Credit Can Assist You
At Emvertex Credit, we offer solutions to help individuals and families manage their finances efficiently in Singapore’s high-cost environment.
1. Debt Consolidation Plans
Simplify repayments and reduce interest rates by consolidating multiple debts into a single loan.
This approach is particularly beneficial for those juggling credit card balances, personal loans, and other financial commitments.
2. Personalised Financial Advice
We provide tailored advice to help you create realistic budgets and stick to them, making day-to-day expenses more manageable.
3. Flexible Loan Options
From short-term loans for emergencies to customised plans for larger expenses, our offerings are designed to suit diverse needs.
Conclusion: Smart Choices for a Sustainable Lifestyle
At the end of the day, the answer for “Why is Singapore so expensive?” lies in the combination of its economic vibrancy, limited land, and a premium placed on quality.
However, by making smart housing and transport choices, adopting budget-friendly dining habits, and managing finances effectively, you can take control of your expenses.
Worry not, because Emvertex Credit is here to support you with financial solutions tailored to your needs.
Whether you’re a local resident or an expatriate adjusting to life in Singapore, we can help you navigate the financial landscape and achieve peace of mind.
🎯 Start making informed financial decisions today and enjoy life in Singapore with confidence!
